--- a/Cargo.lock
+++ b/Cargo.lock
@@ -642,6 +642,16 @@
 ]
 
 [[package]]
+name = "core-foundation"
+version = "0.10.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b2a6cd9ae233e7f62ba4e9353e81a88df7fc8a5987b8d445b4d90c879bd156f6"
+dependencies = [
+ "core-foundation-sys",
+ "libc",
+]
+
+[[package]]
 name = "core-foundation-sys"
 version = "0.8.7"
 source = "registry+https://github.com/rust-lang/crates.io-index"
@@ -974,6 +984,8 @@
  "nom 8.0.0",
  "openssh",
  "opentelemetry",
+ "opentelemetry-appender-tracing",
+ "opentelemetry-exporter-env",
  "opentelemetry_sdk",
  "peg",
  "regex",
@@ -1239,8 +1251,10 @@
 checksum = "ff2abc00be7fca6ebc474524697ae276ad847ad0a6b3faa4bcb027e9a4614ad0"
 dependencies = [
  "cfg-if",
+ "js-sys",
  "libc",
  "wasi",
+ "wasm-bindgen",
 ]
 
 [[package]]
@@ -1250,9 +1264,11 @@
 checksum = "899def5c37c4fd7b2664648c28120ecec138e4d395b459e5ca34f9cce2dd77fd"
 dependencies = [
  "cfg-if",
+ "js-sys",
  "libc",
  "r-efi 5.3.0",
  "wasip2",
+ "wasm-bindgen",
 ]
 
 [[package]]
@@ -1450,6 +1466,23 @@
 ]
 
 [[package]]
+name = "hyper-rustls"
+version = "0.27.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e3c93eb611681b207e1fe55d5a71ecf91572ec8a6705cdb6857f7d8d5242cf58"
+dependencies = [
+ "http",
+ "hyper",
+ "hyper-util",
+ "rustls",
+ "rustls-native-certs",
+ "rustls-pki-types",
+ "tokio",
+ "tokio-rustls",
+ "tower-service",
+]
+
+[[package]]
 name = "hyper-timeout"
 version = "0.5.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
@@ -1905,6 +1938,12 @@
 checksum = "5e5032e24019045c762d3c0f28f5b6b8bbf38563a65908389bf7978758920897"
 
 [[package]]
+name = "lru-slab"
+version = "0.1.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "112b39cec0b298b6c1999fee3e31427f74f676e4cb9879ed1a121b43661a4154"
+
+[[package]]
 name = "matchers"
 version = "0.2.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
@@ -2123,6 +2162,12 @@
 ]
 
 [[package]]
+name = "openssl-probe"
+version = "0.2.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7c87def4c32ab89d880effc9e097653c8da5d6ef28e6b539d313baaacfbafcbe"
+
+[[package]]
 name = "opentelemetry"
 version = "0.31.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
@@ -2137,6 +2182,18 @@
 ]
 
 [[package]]
+name = "opentelemetry-appender-tracing"
+version = "0.31.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ef6a1ac5ca3accf562b8c306fa8483c85f4390f768185ab775f242f7fe8fdcc2"
+dependencies = [
+ "opentelemetry",
+ "tracing",
+ "tracing-core",
+ "tracing-subscriber",
+]
+
+[[package]]
 name = "opentelemetry-exporter-env"
 version = "0.1.0"
 dependencies = [
@@ -2551,6 +2608,61 @@
 ]
 
 [[package]]
+name = "quinn"
+version = "0.11.9"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b9e20a958963c291dc322d98411f541009df2ced7b5a4f2bd52337638cfccf20"
+dependencies = [
+ "bytes",
+ "cfg_aliases",
+ "pin-project-lite",
+ "quinn-proto",
+ "quinn-udp",
+ "rustc-hash 2.1.1",
+ "rustls",
+ "socket2 0.5.10",
+ "thiserror 2.0.18",
+ "tokio",
+ "tracing",
+ "web-time",
+]
+
+[[package]]
+name = "quinn-proto"
+version = "0.11.14"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "434b42fec591c96ef50e21e886936e66d3cc3f737104fdb9b737c40ffb94c098"
+dependencies = [
+ "bytes",
+ "getrandom 0.3.4",
+ "lru-slab",
+ "rand 0.9.2",
+ "ring",
+ "rustc-hash 2.1.1",
+ "rustls",
+ "rustls-pki-types",
+ "slab",
+ "thiserror 2.0.18",
+ "tinyvec",
+ "tracing",
+ "web-time",
+]
+
+[[package]]
+name = "quinn-udp"
+version = "0.5.14"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "addec6a0dcad8a8d96a771f815f0eaf55f9d1805756410b39f5fa81332574cbd"
+dependencies = [
+ "cfg_aliases",
+ "libc",
+ "once_cell",
+ "socket2 0.5.10",
+ "tracing",
+ "windows-sys 0.52.0",
+]
+
+[[package]]
 name = "quote"
 version = "1.0.45"
 source = "registry+https://github.com/rust-lang/crates.io-index"
@@ -2729,16 +2841,22 @@
  "http-body",
  "http-body-util",
  "hyper",
+ "hyper-rustls",
  "hyper-util",
  "js-sys",
  "log",
  "percent-encoding",
  "pin-project-lite",
+ "quinn",
+ "rustls",
+ "rustls-native-certs",
+ "rustls-pki-types",
  "serde",
  "serde_json",
  "serde_urlencoded",
  "sync_wrapper",
  "tokio",
+ "tokio-rustls",
  "tower 0.5.3",
  "tower-http 0.6.8",
  "tower-service",
@@ -2898,6 +3016,18 @@
 ]
 
 [[package]]
+name = "rustls-native-certs"
+version = "0.8.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "612460d5f7bea540c490b2b6395d8e34a953e52b491accd6c86c8164c5932a63"
+dependencies = [
+ "openssl-probe",
+ "rustls-pki-types",
+ "schannel",
+ "security-framework",
+]
+
+[[package]]
 name = "rustls-pemfile"
 version = "2.2.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
@@ -2912,6 +3042,7 @@
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "be040f8b0a225e40375822a563fa9524378b9d63112f53e19ffff34df5d33fdd"
 dependencies = [
+ "web-time",
  "zeroize",
 ]
 
@@ -2957,6 +3088,15 @@
 ]
 
 [[package]]
+name = "schannel"
+version = "0.1.29"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "91c1b7e4904c873ef0710c1f407dde2e6287de2bebc1bbbf7d430bb7cbffd939"
+dependencies = [
+ "windows-sys 0.61.2",
+]
+
+[[package]]
 name = "scopeguard"
 version = "1.2.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
@@ -2989,6 +3129,29 @@
 ]
 
 [[package]]
+name = "security-framework"
+version = "3.7.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b7f4bc775c73d9a02cde8bf7b2ec4c9d12743edf609006c7facc23998404cd1d"
+dependencies = [
+ "bitflags",
+ "core-foundation",
+ "core-foundation-sys",
+ "libc",
+ "security-framework-sys",
+]
+
+[[package]]
+name = "security-framework-sys"
+version = "2.17.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6ce2691df843ecc5d231c0b14ece2acc3efb62c0a398c7e1d875f3983ce020e3"
+dependencies = [
+ "core-foundation-sys",
+ "libc",
+]
+
+[[package]]
 name = "self_cell"
 version = "0.10.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
@@ -3455,6 +3618,21 @@
 ]
 
 [[package]]
+name = "tinyvec"
+version = "1.11.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "3e61e67053d25a4e82c844e8424039d9745781b3fc4f32b8d55ed50f5f667ef3"
+dependencies = [
+ "tinyvec_macros",
+]
+
+[[package]]
+name = "tinyvec_macros"
+version = "0.1.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1f3ccbac311fea05f86f61904b462b55fb3df8837a366dfc601a0161d0532f20"
+
+[[package]]
 name = "tokio"
 version = "1.50.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -11,6 +11,7 @@
 fleet-shared = { path = "./crates/fleet-shared" }
 nix-eval = { path = "./crates/nix-eval" }
 nixlike = { path = "./crates/nixlike" }
+opentelemetry-exporter-env = { path = "./crates/opentelemetry-exporter-env" }
 
 abort-on-drop = "0.2"
 age = { version = "0.11", features = ["plugin", "ssh"] }
@@ -40,8 +41,9 @@
 nix = { version = "0.31.2", features = ["fs", "user"] }
 nom = "8.0.0"
 opentelemetry = "0.31.0"
-opentelemetry-otlp = { version = "0.31.0", features = ["grpc-tonic", "gzip-tonic", "http-json"] }
+opentelemetry-otlp = { version = "0.31.0", features = ["grpc-tonic", "gzip-tonic", "http-json", "reqwest-rustls"] }
 opentelemetry_sdk = "0.31.0"
+opentelemetry-appender-tracing = "0.31.1"
 openssh = "0.11.5"
 peg = "0.8.5"
 pkg-config = "0.3.30"
--- a/cmds/fleet/Cargo.toml
+++ b/cmds/fleet/Cargo.toml
@@ -48,6 +48,8 @@
 thiserror.workspace = true
 tracing-indicatif = { workspace = true, optional = true }
 tracing-opentelemetry.workspace = true
+opentelemetry-exporter-env.workspace = true
+opentelemetry-appender-tracing.workspace = true
 
 [features]
 default = ["indicatif"]
--- a/cmds/fleet/src/main.rs
+++ b/cmds/fleet/src/main.rs
@@ -25,6 +25,12 @@
 use nix_eval::{
 	gc_register_my_thread, gc_unregister_my_thread, init_libraries, init_tokio_for_nix,
 };
+use opentelemetry::trace::TracerProvider;
+use opentelemetry_appender_tracing::layer::OpenTelemetryTracingBridge;
+use opentelemetry_exporter_env::{
+	OtlpBaseSettings, OtlpLogsSettings, OtlpTracesSettings, ResolvedOtlpSettings,
+};
+use opentelemetry_sdk::{logs::SdkLoggerProvider, trace::SdkTracerProvider};
 use tracing::{Instrument, error, info, info_span};
 #[cfg(feature = "indicatif")]
 use tracing_indicatif::IndicatifLayer;
@@ -96,6 +102,14 @@
 	fleet_opts: FleetOpts,
 	#[clap(subcommand)]
 	command: Opts,
+	#[clap(long, next_help_heading = "Telemetry", env = "OTEL_FLEET")]
+	otel: bool,
+	#[clap(flatten)]
+	otlp_base: OtlpBaseSettings,
+	#[clap(flatten)]
+	otel_logs: OtlpLogsSettings,
+	#[clap(flatten)]
+	otel_traces: OtlpTracesSettings,
 }
 
 async fn run_command(config: &Config, opts: FleetOpts, command: Opts) -> Result<()> {
@@ -115,7 +129,7 @@
 	Ok(())
 }
 
-fn setup_logging() {
+fn setup_logging(opts: &RootOpts) -> Result<()> {
 	#[cfg(feature = "indicatif")]
 	let indicatif_layer = {
 		use std::time::Duration;
@@ -173,12 +187,35 @@
 		sub.with_filter(filter) // .without,
 	});
 
-	if env::var_os("FLEET_OTEL").is_some() {}
-
-	// #[cfg(feature = "indicatif")]
 	#[cfg(feature = "indicatif")]
 	let reg = reg.with(indicatif_layer);
-	reg.init();
+
+	if opts.otel {
+		let traces = ResolvedOtlpSettings::traces(&opts.otlp_base, &opts.otel_traces)?;
+		let span_exporter = traces.span_exporter()?;
+		let logs = ResolvedOtlpSettings::logs(&opts.otlp_base, &opts.otel_logs)?;
+		let log_exporter = logs.log_exporter()?;
+
+		let span_provider = SdkTracerProvider::builder()
+			.with_batch_exporter(span_exporter)
+			.build();
+		let log_provider = SdkLoggerProvider::builder()
+			.with_batch_exporter(log_exporter)
+			.build();
+
+		let logger = OpenTelemetryTracingBridge::new(&log_provider);
+		let tracer = span_provider.tracer("fleet");
+
+		let reg = reg
+			.with(tracing_opentelemetry::layer().with_tracer(tracer))
+			.with(logger);
+
+		reg.init();
+	} else {
+		reg.init();
+	};
+
+	Ok(())
 }
 
 fn main() -> ExitCode {
@@ -188,7 +225,10 @@
 		return ExitCode::SUCCESS;
 	}
 
-	setup_logging();
+	if let Err(e) = setup_logging(&opts) {
+		eprintln!("{e:#}");
+		return ExitCode::FAILURE;
+	}
 
 	init_libraries();
 
--- a/crates/fleet-base/src/opts.rs
+++ b/crates/fleet-base/src/opts.rs
@@ -96,7 +96,7 @@
 	#[clap(long, default_value = env!("NIX_SYSTEM"))]
 	pub local_system: String,
 
-	/// By default fleet continues on single derivation build failure
+	/// By default fleet continues on single derivation build failure;
 	/// this flag makes command fail immediately
 	///
 	/// Opposite of Nix's --keep-going
--- a/crates/opentelemetry-exporter-env/src/lib.rs
+++ b/crates/opentelemetry-exporter-env/src/lib.rs
@@ -196,7 +196,12 @@
 		pub struct $id {
 			$(
 				$(#[doc = $doc])*
-				#[cfg_attr(feature = "clap", arg(long = concat!("otel-exporter-otlp-", $long_prefix, $long), env = concat!("OTEL_EXPORTER_OTLP_", $env_prefix, $env) $(, $($tt)*)?))]
+				#[cfg_attr(feature = "clap", arg(
+						long = concat!("otel-exporter-otlp-", $long_prefix, $long),
+						id = concat!("otel-exporter-otlp-", $long_prefix, $long),
+						env = concat!("OTEL_EXPORTER_OTLP_", $env_prefix, $env)
+						$(, $($tt)*)?)
+				)]
 				pub $name: Option<$ty>,
 			)*
 		}